Adani Gas hits 20% upper circuit on bagging 13 CGD projects

The stock trading at Rs 97.80, its highest level since listing on November 5, rallied 26% in past two days from Rs 77.70 as the stock shifted to normal trading segment with effect from Tuesday.

SI Reporter  |  Mumbai 

Shares of (AGL) are locked in the upper circuit of 20% at Rs 97.80 per share on the BSE, as the company said that it has bagged authorisation from the Petroleum and Natural Regulatory Board (PNGRB), Government of India to expand its city footprint in 13 new geographical areas in the recently concluded 9th round of (CGD) bidding.

In addition, the company has also won 9 geographical areas in its joint venture company with Corporation, i.e. - (IOAGPL).

The stock is trading at its highest level since listing November 5, 2018, it has rallied 26% in past two trading days from Rs 77.70 as the stock shifted to normal trading segment with effect from Tuesday, November 20, from the restricted segment. In comparison, the S&P BSE Sensex was down 1.7% in the past two trading days.

The trading volumes on the counter jumped nearly 10-fold with a combined 9.51 million shares changed hands on the BSE and NSE. There were pending buy orders for 702,219 shares on both the exchanges.

AGL is committed to achieve approximately 23 lakh domestic piped natural gas connections and install approximately 500 stations in 13 new geographical areas. The 13 new geographical areas for which AGL has been granted authorisation to lay city gas infrastructure are in six states which are Gujarat, Haryana, Karnataka, Tamil Nadu, Rajasthan and Odisha.

The government of India has set itself a target to increase the share of natural gas in India’s primary energy mix to 15% till 2022 from 6.5% in 2015.

“To leverage India’s rapidly growing gas market; has planned to invest over Rs 80 billion in the next 5 years to consolidate its position as the largest private company in the sector. It is noteworthy that India’s current consumption is about 15-18% of domestic gas production and even at peak demand, consumption will be around 25-30%,” Adani Gas said in a press release.


First Published: Wed, November 21 2018. 13:53 IST